Iceland and China Sign Free Trade Agreement

Yesterday, Iceland became the first European nation to sign a free trade agreement with China.  The purpose of the agreement is “to enhance their exchange and  practical co-operation on the Arctic” and “further deepen their mutually beneficial co-operation in the fields of trade and investment.”  Pursuant to the agreement, tariffs are most goods will be eliminated.  Currently, trade between the two nations is relatively small, but that could change under the new agreement.  Observers suggest that China has an interest in increasing its presence in the Arctic region and pursuant joint oil exploration activities with Iceland.

(cgb)